The Chefs' Warehouse(US:CHEF)2021-04-27 16:00Financial Performance - Net sales for the thirteen weeks ended March 26, 2021, were $280,217, a decrease of 25.4% compared to $375,431 for the same period in 2020[14]. - Gross profit for the same period was $58,947, representing a gross margin of 21.0%, down from $85,488 and a margin of 22.8% in the prior year[14]. - The company reported a net loss of $17,921 for the thirteen weeks ended March 26, 2021, compared to a net loss of $14,085 for the same period in 2020, reflecting an increase in losses of 27.5%[14]. - Operating loss for the period was $20,128, compared to an operating loss of $17,058 for the same period in 2020, indicating a worsening of 12.1%[14]. - The company reported a net cash used in operating activities of $11,663 for the thirteen weeks ended March 26, 2021, compared to net cash provided by operating activities of $21,985 in the same period of the previous year[19]. - The Company reported net sales of $280,217 for the thirteen weeks ended March 26, 2021, a decrease of 25.4% compared to $375,431 for the same period in 2020[31]. - The Company experienced a net loss of $17,921 for the thirteen weeks ended March 26, 2021, compared to a net loss of $14,085 for the same period in 2020, resulting in a basic and diluted net loss per share of $(0.49)[34]. - Organic sales declined by $105.0 million, or 28.0%, primarily due to the impacts of the COVID-19 pandemic, with organic case count in the specialty category down approximately 39.4%[68]. - Gross profit decreased to $58.9 million, down $26.5 million or 31.0% from $85.5 million in the prior year, with a gross profit margin of 21.0%, down from 22.8%[69]. - Selling, general and administrative expenses were $80.2 million, a decrease of $28.6 million or 26.3% compared to $108.9 million in the prior year[70]. - The company reported a net loss of $17.9 million for the quarter, compared to a net loss of $14.1 million in the same quarter of the previous year[65]. Assets and Liabilities - Total current assets decreased to $398,904 as of March 26, 2021, from $405,662 as of December 25, 2020, a decline of 1.9%[12]. - Total liabilities increased to $634,566 as of March 26, 2021, compared to $629,735 as of December 25, 2020, an increase of 0.1%[12]. - Cash and cash equivalents decreased to $175,000 as of March 26, 2021, from $193,281 as of December 25, 2020, a decline of 9.5%[12]. - The Company’s inventories were valued at $8,755 as of March 26, 2021, compared to $9,013 as of December 25, 2020, reflecting adjustments for shrinkage and obsolescence[40]. - As of March 26, 2021, total debt obligations amounted to $402.532 million, a slight decrease from $404.179 million on December 25, 2020[47]. - As of March 26, 2021, the company had an aggregate indebtedness of $190.0 million under the Term Loan and ABL Facility, with a potential after-tax earnings decrease of approximately $1.4 million per annum for a 100 basis point increase in market interest rates[91]. Shareholder Information - The weighted average common shares outstanding increased to 36,401,748 for the thirteen weeks ended March 26, 2021, compared to 29,621,433 for the same period in 2020, an increase of 22.9%[14]. - The weighted average common shares outstanding increased to 36,401,748 for the thirteen weeks ended March 26, 2021, up from 29,621,433 in the prior year[34]. - The company repurchased a total of 38,503 shares of common stock during the thirteen weeks ended March 26, 2021, at an average price of $29.51 per share[97]. Expenses and Costs - The company incurred interest expense of $4,763 for the thirteen weeks ended March 26, 2021, down from $5,124 in the same period of the previous year[14]. - Food processing costs included in cost of sales were $5,396 for the thirteen weeks ended March 26, 2021, slightly down from $5,413 for the same period in 2020[32]. - Depreciation expense for the thirteen weeks ended March 26, 2021 was $3.935 million, an increase from $3.568 million for the same period in 2020[43]. - The company recognized stock-based compensation expense of $2.458 million for RSAs during the thirteen weeks ended March 26, 2021, compared to $851 thousand for the same period in 2020[51]. - Selling, general and administrative expenses were $80.2 million, a decrease of $28.6 million or 26.3% compared to $108.9 million in the prior year[70]. Legal and Compliance - The company believes that the outcome of ongoing legal proceedings will not have a material adverse effect on its consolidated financial statements[94]. - The company is involved in legal proceedings arising from ordinary business conduct, but management believes these will not materially affect financial statements[94]. - There were no changes in internal control over financial reporting during the quarter ended March 26, 2021, that materially affected the company's financial reporting[93]. - The company did not have any off-balance sheet arrangements as of March 26, 2021[88]. - The company's disclosure controls and procedures were evaluated and deemed effective as of March 26, 2021[92]. - There have been no material changes to the company's risk factors as previously disclosed in its Annual Report on Form 10-K for the year ended December 25, 2020[95]. Accounting and Guidance - The Company adopted new accounting guidance in fiscal 2021, which had an immaterial impact on its consolidated financial statements[28]. - The effective tax rate for the quarter was 28.0%, down from 36.5% in the prior year, primarily due to tax refunds claimed against prior years[74]. - The company is not providing guidance on capital expenditures for fiscal 2021 due to uncertainty regarding the economic recovery and pandemic-related restrictions[79]. - The effective interest rate on the company's Convertible Senior Notes was approximately 2.3% as of March 26, 2021[47]. Acquisitions - The company entered into an asset purchase agreement on April 23, 2021, to acquire assets of a specialty producer for approximately $6 million, with potential additional contingent consideration of up to $4 million[57].